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San Francisco 10, Bae 7, Us 6, Adams 5, Matthew Perry 4, Houston 3, California 3, Jim 2, Willie 2, James Wright 1, Brandon 1, Burt 1, Burth 1, Willie Adams 1, Leslie 1, Doreen 1, Katz 1, Jim Malony 1, Pete Daly 1, Peter Daly 1,
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  SFGTV    [untitled]  

    November 2, 2012
    11:00 - 11:30am PDT  

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is
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>> commissioner katz is probably on her way so we're going to start. >> i move we reconvene in open session. >> second. >> open session. >> also, [inaudible]. also we cannot disclose anything discussed in executive session. >> second. >> okay. please be advised that ringing of any cell phones, pagers or similar electronic devices are prohibited at this meeting. please be advised the chair may order the removal from the room of any person responsible for the ring big of or use of a cell phone, pager, or other similar sound producing electronic device. please be advised that a member of the public can have up to three minutes to make pertinent public comments on each agenda item unless the port commission adopts a shorter period on any item. item 7a, executive director's report. >> good afternoon, port
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commissioners. ment members of the public, members of the port staff, welcome here today. i just have a couple of very quick and happy items to report on, starting with milestone update on our pier 43-1/2 project. you may recall that that is part of the bay trail and lays atop the seawall in fisherman's wharf between where blue and gold sweet calls and the san friscan restaurant. constructing a new waterfront concrete promenade from powell street to the franciscan restaurant. our contractor there is vortex marine. they have been working rather diligently including saturdays most of the last month and will continue to work saturdays through thanksgiving with the goal of completing the project to substantial completion by thanksgiving. so far, 92 two-foot wide
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diameter concrete piles each of which are 100 feet in length, support the new wharf deck and that deck will go along the promenade there and come around behind the franciscan restaurant replacing old deck that has been condemned sometime ago. in addition and very importantly, over 500 feet of the timber seawall has been replaced with reinforced concrete wall and rock armor stone. this is a very important project for that area of the waterfront. on october 4th, friday, october 4th, the contractor began laying the cement pre-cast segment. so, part of the concrete will be poured in place and part of that concrete will be pre-cast and delivered. and, so, three of the pre-cast segments were delivered via barge and set into place saturday, october 13th. and the remaining 11 segments have been cast and are in transit to the job site for placement in the next two weeks. this past week at 1:00 a.m., 42 cement trucks arrived to pour
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the remaining concrete of the area that's cast in place. and, so, that was really rather cool. they came out 1:00 a.m. and were finished by sunrise. so, it was a very busy night, if you will. they poured 9,000 square feet of 15-inch thick concrete deck, about 380 cubic yards. that represents about 40% of the overall deck material. so, the remainder will be cast -- pre-cast, which will be delivered by barge. the next few weeks we'll see the remainder of the pre-cast deck panels placed p. topping slab placed, railing placed, lighting, and land side paving. so, this project is moving along with an expected opening date and time for thanksgiving on the opening of the crab season. so, that will be really perfect for all of us. i just want to take a few moments to thank all of our partners in the fisherman's wharf community for their patience with the project and the department of public works for their assistance in project management and, of course, members of the port staff
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ranging from port engineering to port real estate, port maintenance, pretty much everybody has been involved in some fashion. that's a very exciting milestone for us. a second one is right here next door and i hope if you didn't get a chance to see it on your way in you'll get a chance to see it on your way out. on saturday half the pier disappeared. it's gone for the most part. it's 90% complete with no serious issues or concerns. there are a few isolated structures which you might be able to see one is up against the pier 1 building. a concrete structure. as well as some of the very, very old ferry floats out towards the back. the project will be substantially complete by the end of this month, which is the middle of next week already. and that is several months ahead of our obligation to complete it by march of 2013. and you may recall that this is an important aspect of our permit with respect to the americas cup and pier 27 cruise terminal project. the pier item was bid out under the fourth amendment to the
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turner's pier cruise terminal contract. the total project is $1.3 million with $1 million going to a local lbe construction contractor, which is the sacker company which is a subcontractor to power engineering. so, we're really very pleased about that, and this is the project that's been on the books for a very long time and my kudos to everyone involved, which is too many people to mention. thanks, very great view of the bay there. motorcycle parking will be restored by the end of the month, which is something that people are concerned about. and from this hopefully we'll be able to restore the seating area as well. lastly i wanted to report on the grateful americas conference that occurred may 11. pete daly traveled to port commission with willie adams. there was a record attendance of 12,500 participants and the
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portmanaged, manned i guess is a better word, an exhibit for the couple of days during the conference. metro ports which is our steve adore company, had a boost and we hosted a cocktail reception for our key suppliers. our customers, if you will. and we also joined by not only commissioner adams as a member of the iowu international secretary treasurer, but also by mike vigilante who is in the back rooting for the giants there. and also james plato who came from the local [speaker not understood], a new approach that we took, it was extraordinarily well received, and together the port and iow delegation met with many of our customers and one on one came home with some good results. and, so, if i can, i'd like to defer over to commissioner adams to see if there is anything he'd like to highlight or share your perspective on. >> thank you.
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first of all, our going to houston is very historical. by the fact in the past only the port would go. but this time the port went and the iow, and i tell you, the customers it was a different approach. we were there working together [inaudible]. and the secretary treasurer, i'm also on the port commission. and we met with different customers. in fact, our biggest customer that goes into pier 80, they're building 10 new ships at $50 million a ship. and they have tried to corner the market. what they're saying is we want to bring double the amount of cargo going into pier 80. we need a good reliable work force. the port and iow have a good working relationship. we have the best working class workers coming from the iow to get the ships in and out, safe and productive. but also to, we said we want to
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partnership with you. we need to get together every three months. we need to meet. we want to bring more cargo to the port of san francisco, it's a maritime port. we realize that. and i just want to say a special thank you to peter daly and jim malony, they worked very hard, they were very professional. but as i said, when we sat down across the table and had breakfast, the guy was just like, wow, i'm just relieved to know that labor, port are working together and we're looking into the future. we want to go out together. and one of my commitments as a commissioner is to go on these trips and to take labor and go with the port. and we want to bring more working class jobs, what the community really needs is jobs. they're not doing a good job in d.c. getting jobs. we want to do it here in the port of san francisco. and i want to thank the support of my commissioners here, president doreen, kim, and leslie, because we're committed. in the future i would just like to say before i'd like to have mike come up and say a word, i
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think we need more presentations on maritime and our clients. i think it's important. i think we need to be abreast. and we know this is a port with a lot of diversity in it from stadiums to maritime, to exploratorium. we all can coexist. madam president, i'd like to have mike come up and maybe jim wants to come up. i appreciate their efforts and hard work and professionalism [speaker not understood]. >> hello. thank you, madam president and commission. i appreciate the time. and willie, all the rest of the staff. i want to tell you, it was quite interesting for me. houston, texas is another
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world. california was -- [laughter] >> that was humidity, right, getting off the plane for sure. we were well received. and, again, i'd like to comment on the port, jim and peter and willie, we worked as a team in the sense our common goal is to bring work to the port of san francisco, develop the brake, boat and bulk facilities that we have and that are still vital maritime docks that we could enhance. speaking to the shippers, they received us in a way that was quite interesting to me because, excuse me, they were surprised, quite surprised. and a lot of the vendors that were in the exhibit were quite surprised that labor was there, especially iowu labor. we're going to make it a point
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of continuing our proactiveness in encouraging work to this port and to the bay area because it's quite important for the middle class of this country to enhance it. i want to say, though, it was interesting in this social venue that was -- took place, some of the exchanges. some of the best deals or the best ways to communicate are at these because it breaks down -- it breaks it down for these guys instead of being in the business atmosphere, there was a social atmosphere and they got to know us a little bit. and that's real important to put a face behind the organization or faces, and it was key. it was quite an experience and we're going to be doing it into the future in 2013. so, thank you and i appreciate the time. >> jim?
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>> commissioners, thank you for, first of all, for supporting setting commissioner adams and mike and james to houston to support us at the brake boat conference. i think one thing mike said is really key. i think business these days, business continues to be all about relationships and developing those key personal relationships and having an opportunity to sit across the table one on one and talk with -- these are the issues we have, these are the -- this is what i'd like you to address, allow us to want to do business with the port of san francisco. and i think we had an opportunity to talk with saga force carriers, bbc chartering, rick mers line and other carriers they'd like to call here and talk about these are the issues that we have. labor is an extremely important part of the conversation. i think its was very powerful
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you september commissioner adams have iowu represented and port commission represented at the conference. and i look forward to doing -- having future opportunities to work together with all of us and partner to work together to get business for the port. so, thank you. and again, thank you for your support. >> thank you. >> [inaudible]. >> go ahead [inaudible]. >> in conclusion, i was just going to say thank you very much, commissioner adams and mike and jim, for your time and your effort in doing this with us and your pragmatism. it paid off handsomely. madam president, that concludes my report. >> i think there is a groundbreaking at the park. i was wondering if we can share those details with the president. >> i will do my best. you can nod or shake her head. we are hoping to have a public
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groundbreaking of the new area at the park, acre and a quarter that was added, reported on a couple meetings ago. this next thursday, next week, november 1st at 10:30 a.m. at the site to celebrate the opening of that important project. and, of course, that is going to be open to the public and i believe invitations will be going out. we just got confirmation today. >> so it is confirmed. >> yes, it is confirmed. >> madam chair, i just want to say [inaudible] when i said in the future i would like more presentations on our maritime clients, i thought it would be helpful [inaudible]. i just wanted to make sure. thank you. >> okay, thank you. we do have item 7b, which is an informational presentation. >> do you want to do public comment -- >> sorry, public comment on the executive director's report. thought we had some already. is there any more? >> [inaudible]. >> one thing you may not have included in the report is one
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of our largest tenants had a big victory -- [laughter] >> so, congratulations to the giants on making it to the world series. glad to have them as a tenant. (applause) >> and to that end, we are working tirelessly to make the next week a great success in every way. so, that effort started interestingly enough. >> to, that do want to thank our staff and dpt and others for working well with the giants, the division series games as well as the championship series games. and now we welcome the world series. i think all of us all working together, it really showed. and i think there are nothing but good things about moving the people through all the games. having talked to some of the folks at the giants, really praised executive director for stepping right up and making
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sure that everyone was on the same page as we [speaker not understood] get things set up. so, thank you. >> thank you for sharing that. i was very gratified by the wonderful beautiful shots of the city we received during all of the days, including our newly repainted port logo on pier 48. we're very proud of. so, more to come with the new projects contemplated at piers 30/32. >> moving on to the next item. >> item 7b, informational presentation on employment and economic impacts as a result of recent infrastructure improvements at the bae-san francisco ship repair yard. >> here is an update on the bae. everything great, what's going on at bae which is a combination of policies and investments led by bae supported and participated in heavily by the port.
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they all just culminated, whether it's a banner year, we wanted to share that with all of you. and jay is going to make that presentation supported by jerry of our maritime division. and [speaker not understood]. so, congratulations to all of you. >> we'll make the presentation if we can contend with unfamiliar technology. i'm not -- i don't know -- yeah. >> [inaudible]. >> it's not that. >> [speaker not understood]. >> second. >> i haven't used this touch pad before. i'm jay ock in the maritime department. maritime regulatory and environmental affairs manager. this that capability i manage
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the port's dredging program and quality air program. i'm here to talk about the programs how they work at the shipyard and how they work together to promote not only environmental enhancements, particularly air quality enhancements here at the port, but also to provide increased revenues for bae, which means increased revenues for the port, and also increased union employment here, maritime related blue collar employment. now, testing 1, 2, 3. okay. the genesis for this was the completion of shore side power at the dry dock. this was a requirement environmental mitigation for the americas cup to proceed. the port contracted, in essence, with bae to do this work. bae performed admirably. got it in and got it done days
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before the first ship came in and connected, which was matthew perry. the matthew perry is still in dry dock there. it's been -- didn't get my update in terms of power usage, but it's been hundreds of thousands of kilowatt hours, the equivalent of a couple hundred household use of electricity. it's been a massive amount of power. this came about, in part -- in large part, due to the fact we had previously constructed shore side power at pier 27. and i wanted to just touch on that for a moment because with the exception of commissioner brandon, this port commission hasn't been here during that project. that started way back in 2006 when we applied for our grant, which came through from the air district in 2007. we subsequently applied for and
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received additional grant funding which resulted in a project with a budget of 5.2 million, where we had $4.2 million in grant funding. so, we got a $5 million project for $1 million out of pocket. we got that done on time, got our first ship connected the end of 2010. by connecting at the end of 2010, we beat out the other california ports and had the first functional shore side power system for cruise ships in california. for the americas cup, though, as you know, they're using pier 27. we're also doing the construction of the cruise terminal at pier 27. for mitigation for taking this out of service for those two years, we needed to construct shore side power at the dry dock.
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the environmental benefit of shore side power for both cruise ships and at the dry dock is huge. i just put up a few numbers here. a typical cruise ship in the 8 to 9 hours they're at dock and connected saves 17 tons of fuel that they would have consumed, which -- and burning that fuel would have produced approximately 51 tons of carbon dioxide and 140 pounds of diesel particulate. diesel particulate, 140 pounds doesn't sound like a lot, but from an air quality perspective that's huge. diesel particulates are carcinogenic. that's much more important than the carbon dioxide which as you know is the global warming issue. i made a rough estimate for similar numbers for the matthew perry, which will be in dry dock for 24 days total.
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that ship wouldn't have been running its engines, we would have needed -- the shipyard would have needed to bring in diesel generatorses to power the ship. i assumed old dirty diesel generators, which would have burned 72 tons of fuel over those 24 days, 217 tons of c.o.2, and almost 290 pounds of diesel pm. so, again, significant numbers. we've also, in addition to investing in shore side power at the dry dock, we've also invested in dredging. most recently in 2011 to ensure there's deep enough draft to get vessels into the dry dock, prior to that in 2008 we invested with princess and bae and upgrades to the dry dock to allow it to take the largest cruise ships as pictured here.
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we're working now with the army corps to get federal funding to dredge more central basin. again, it provides increased and continued access to the dry dock and other facilities at the shipyard. the goal is more jobs and more revenue. the construction of these projects themselves employ people, bae in building the shore side power, expended almost 8,000 hours of their own labor. there is additional labor expended by subcontractors in both the design and construction of that project. this is a $5.7 million project funded by the city and the port. and once it's up and going for a while and we meet electricity usage goal, the puc then will
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rebate the port $1.5 million. so, the dredging is -- dredging is kind of the unseen -- it is the unseen component of port maintenance. but it has a real effect. it enables our cruise ships to come in, in this particular case, it enables ships to continue to come into the dry dock. this slide, the small illegible numbers are the data that the big white numbers at the bottom are based on. this is the work that would not have been able to come into the dry dock if we had not done the dredging a little over a year ago in 2011. grand total of almost $1.6 million of additional rent that came into the port that we would not have seen, and $48 million worth of projects that the shipyard could not have done without that $2 million
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worth of dredging. so, the investments over the last few years have really paid off. i'm going to come back to that one. looking at the overall trends, it's been increasing revenues for the last five years, beginning with the dry dock 2 expansion and continuing with our investments in the central basin and the shore side power. the numbers on the blue columns are overall gross yard revenues. the green numbers on top which looks like a small amount, but actually isn't, is the net port revenue, which is increased from little over $900,000 to $1.8 million. so, we've doubled our net revenue in the course of five years. in terms of labor, it's a lot of labor. the vertical axis here is
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man-hours or person hours, if you'll excuse me, of labor. massive numbers of people come to work at the shipyard when there's a ship there. a good portion of that is union labor that's employed directly by bae. they also have subcontractors come in for specialized work. the white numbers on the columns represent the number of union workers showing up every day for each one of these jobs. so, we're looking at anywhere from 130 to 300 workers showing up every day because she's ships have come into the dry dock for work. and, so, basically we've invested, we've partnered with bae and both invested and we've created more jobs, more good union jobs here at the port of san francisco coming out of our maritime business. we've also increased port
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revenues through that. and equally importantly, we've cleaned up the ports there in the process. so, it's been a win all the way around, a three-way win. and with that, i'll take questions. >> [inaudible]. >> just a couple very quick, james wright. this is unique. working with the port of san francisco, i've been here five years now. i can't believe that. i've been here five years now. and working with the port of san francisco, the relationship that the shipyard has with the port of san francisco is working to everybody's benefit. the yard -- we've grown -- nobody's grown 65% in revenue in the last five years. it's not happening. the shipyard has, and that goes directly to jobs. i mean, we've got a lot of people.
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we're now at a point where we're having discussions with the union saying, where are you going to get us the additional -- where do we train the guys that we need to do to bring this work on? all of this is based on a public-private partnership with the port of san francisco and the shipyard. the dry dock expansion, allowed us to do the cruise ships we now do. the dredging has allowed us to bring in the ships we now do. [speaker not understood] coming through, we're now able to do ships for the navy seal of command that we couldn't do at all. the u.s. government is now actually scheduling ships to the san francisco yard based on the availability of the dry dock. we've had discussions yesterday about when is the richard burt coming in. richard burth is another very large project like the matthew perry, like the alan shepherd. there's only two dry dockses in the pacific basin that can pick them up, one is in guantanamo, one --g

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